acct exam 1 - ACC 2301 Exam 1, spring 2011 (Dr. Said) 1.The...

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ACC 2301 Exam 1, spring 2011 (Dr. Said) 1.The basic accounting equation cannot be restated as a. Assets – Liabilities = Stockholders' Equity. b. Assets – Stockholders' Equity = Liabilities. c. Stockholders' Equity + Liabilities = Assets. d. Assets + Liabilities = Stockholders' Equity. 2.Stockholders' equity is decreased by all of the following except a. sales of stock. b. dividends. c. expenses. d. net losses. 3.A net loss will result during a time period when a. liabilities exceed assets. b. dividends exceed investments. c. expenses exceed revenues. d. revenues exceed expenses. 4.If total liabilities decreased by $25,000 and stockholders' equity increased by $5,000, then total assets must change by what amount and direction during that same period? a. $20,000 decrease b. $20,000 increase c. $25,000 increase d. $30,000 increase 5.Stockholders' equity is decreased by a. assets. b. revenues. c. expenses . d. liabilities. 6.If expenses are paid in cash, then a. assets will increase. b. liabilities will decrease. c. stockholders' equity will increase. d. assets will decrease . 7.As of December 31, 2011, Sievers Company has assets of $70,000 and stockholders' equity of $40,000. What are the liabilities as of December 31, 2011? a. $30,000. b. $20,000. c. $50,000. d. $40,000. 8.A balance sheet shows a. revenues, liabilities, and stockholders' equity. b. expenses, drawings, and stockholders' equity. c. revenues, expenses, and dividends. d. assets, liabilities, and stockholders' equity. 1
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9.An income statement a. summarizes the changes in stockholders' equity for a specific period of time. b. reports the changes in assets, liabilities, and stockholders' equity over a period of time. c. reports the assets, liabilities, and stockholders' equity at a specific date. d. presents the revenues and expenses for a specific period of time. 10. Fontaine Fox Company buys a $12,000 van on credit. The transaction will affect the a. ncome statement and retained earnings statement only. b. income statement, retained earnings statement, and balance sheet. c. income statement only. d. Balance sheet only. 11. Ryder Company purchases $600 of equipment from Montez Inc. for cash. The effect on the components of the basic accounting equation of Ryder Company is a. an increase in assets and liabilities. b. a decrease in assets and liabilities. c. no change in total assets. d. an increase in assets and a decrease in liabilities. 12. At October 1, Smithson Enterprises reported stockholders' equity of $70,000. During October, common stock of $10,000 was issued and the company posted a net loss of $6,000. If stockholders' equity at October 31 totals $70,000, what amount of dividends were paid during the month? a.
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This note was uploaded on 04/26/2011 for the course ACCT 2301 taught by Professor Butler during the Spring '09 term at University of Houston - Downtown.

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acct exam 1 - ACC 2301 Exam 1, spring 2011 (Dr. Said) 1.The...

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